UK’s Used Car Market Continues to Grow in Q2 2024, Led by Surge in Electric Vehicle Sales
The UK’s used car market is on the rise, with the latest figures showing a 7.2% growth in Q2 2024. This marks the sixth consecutive quarter of growth, with used car transactions increasing across every month of the year so far. The Society of Motor Manufacturers and Trades (SMMT) attributes this growth to the sustained run of growth in the new car sector over the past 24 months.
One of the most notable trends in the used car market is the growing popularity of electric vehicles (EVs). Sales of battery electric vehicles (BEVs) saw a significant increase of 52.6% year on year, with BEVs now accounting for 2.4% of the market. Plug-in hybrids (PHEVs) and hybrids (HEVs) also experienced growth in sales, indicating a shift towards more environmentally friendly vehicles.
Despite the rise of EVs, petrol- and diesel-powered cars still dominate the market, accounting for 92.4% of all vehicles. However, the popularity of EVs is expected to continue to grow, especially as the prices of used EVs have become more affordable compared to petrol and diesel equivalents.
The top-selling used vehicle types remain superminis, lower medium, and dual purpose vehicles, making up three-quarters of all used vehicle transactions. Black continues to be the most popular car color, followed by grey and blue.
Industry experts have highlighted the importance of incentives and investment in charging infrastructure to further drive the demand for EVs in the used car market. The ZEV mandate, which requires a percentage of car sales to be zero-emission models, is also expected to impact the new and used car sectors, as buyers may be deterred by the high upfront costs of EVs.
Overall, the rise in the UK’s used car market reflects changing consumer preferences towards more sustainable and affordable options. As the market continues to evolve, it will be interesting to see how the industry adapts to meet the growing demand for electric vehicles and address the challenges posed by regulatory mandates.